The Federal Trade Commission’s new rule on unfair or deceptive fees took effect in May. The rule, which aims to stop bait-and-switch pricing, requires businesses to include all mandatory fees in the advertised price for certain purchases, particularly live-event tickets and short-term lodging.
This means businesses can no longer advertise a base price and later tack on charges such as processing a fee on a live-event ticket, a per-day fee on a hotel room, or a cleaning fee on a vacation rental.
The rule applies to any business — whether online, in-store, or through an app — that offers, displays, or advertises:
- Live-event tickets for concerts, sports, theater, or other in-person performances.
- Short-term lodging, including hotels, motels, inns, and vacation rentals (e.g., Airbnb, VRBO), as well as discounted extended stays.
Not covered under the rule:
- Long-term housing or landlord-tenant leases
- Lease extensions from rental providers
- Corporate housing offered under long-term lease terms
Note: A “short-term” stay is not defined by any set duration — it depends on the nature of the accommodation.
Fees that don’t have to be included upfront: There are a few fees or charges that a business can disclose later in the transaction, as long as it discloses them
before asking for payment. The total price displayed upfront need not include:
- Taxes or other government charges.
- Shipping charges.
- Charges for optional goods or services that people may buy as part of the same transaction.
Consumers who suspect a scam or an unfair business practice should contact the Ohio Attorney General’s Office at www.OhioProtects.org or 800-282-0515.